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    Microeconomics A Contemporary Introduction Study Set 1
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    Exam 14: Transaction Costs, Imperfect Information, and Behavioral Economics
  5. Question
    Bad Risks May Be the Most Willing to Pay High
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Bad Risks May Be the Most Willing to Pay High

Question 90

Question 90

Multiple Choice

Bad risks may be the most willing to pay high interest rates and thus get loans.This describes an example of


A) symmetrical information
B) adverse selection
C) natural selection
D) moral hazard
E) the winner's curse

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